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Amazon European VAT Analysis, How to Register and Report VAT
September 15, 2022
Seller A
Who is actually responsible for VAT?In what specific situations is it necessary to register a VAT number?
Seller B
How can many countries in Europe register VAT numbers efficiently?
Seller C
How to achieve European VAT compliance with a limited fee?
European VAT is a type of tax levied on consumer spending. It is levied on your taxable sales within Europe and paid to the appropriate country's tax authority through a VAT return. If you sell in any European country, you may need to register a local VAT number. VAT compliance is a critical step in account security, and sellers must pay attention to it!
01
Who is responsible for VAT?
Who is responsible for VAT?
Generally, VAT applies when a VAT-registered business sells goods or services to another customer throughout the product sales process—from manufacturing to distribution until the end customer bears the cost of that tax.
02
In what situations do I need to register and file VAT?
In what situations do I need to register and file VAT?
Simply put, for Chinese sellers, in any country they have inventory, they need to register a VAT number for which country and regularly file VAT payments.
*Amazon Logistics Europe Integrated Services/China-Europe Plans all place your goods in the relevant countries, so please register your VAT number in the relevant country as soon as possible after the relevant program is launched
03
Schedule for registering a VAT number
Schedule for registering a VAT number
The average registration time in some countries is long. Sellers with logistics plans within 6 months are requested to apply for a VAT number as soon as possible and ensure that the VAT number is uploaded before inventory is generated. Otherwise, there is a risk that the store will close the store and ban sales, storage restrictions, or even disposal of inventory. The second half of the year is the traditional peak shopping season (Black Friday, Christmas, etc.), so be sure to ensure the store's tax compliance to avoid affecting peak season sales and causing unnecessary losses.
To ensure VAT compliance as much as possible, Amazon's VAT Consolidation Service is the preferred choice for sellers. Below, we've introduced and compiled a guide and detailed introduction to Amazon's VAT integration service.
Focus on the blackboard: the event will be over at the end of this month!
▶ If you are a new seller entering Europe in 2022, subscribe to Amazon's VAT integration service before September 30 and enjoy up to €598 off!
▶ If you are a new seller in Europe and have also received an issue log of exclusive offers for the China-Europe Plan on Seller Central, subscribe to Amazon's VAT integration service before September 30, activate the China-Europe Plan and upload your VAT number by November 30, and you can save up to 2,598 euros! This is an opportunity not to be missed!
▶ If you are a new seller in Europe and have also received an issue log of exclusive offers for the China-Europe Plan on Seller Central, subscribe to Amazon's VAT integration service before September 30, activate the China-Europe Plan and upload your VAT number by November 30, and you can save up to 2,598 euros! This is an opportunity not to be missed!
04
A strategy for scavenging wool
A strategy for scavenging wool
● Wool-scavenging Strategy 1
If you are a new seller entering Europe in 2022, you can enjoy a discount of up to 598 euros if you subscribe to Amazon's VAT integration service before September 30, 2022 Beijing time!
As a new seller in Europe, you can save up to 2,598 euros if you subscribe to Amazon's VAT integration service before September 30, receive an issue log of exclusive offers for the China-Europe Plan on Seller Central, activate the China-Europe Plan and upload your VAT number by November 30!
As a new seller in Europe, you can save up to 2,598 euros if you subscribe to Amazon's VAT integration service before September 30, receive an issue log of exclusive offers for the China-Europe Plan on Seller Central, activate the China-Europe Plan and upload your VAT number by November 30!
● Wool-scavenging Strategy 2
If you receive an issue log of exclusive offers for the China-Europe Plan in Seller Central, subscribe to Amazon's VAT integration service, activate the China-Europe Plan, and upload your VAT number before November 30, you can get up to €2,000 in direct rebates!!!
● Wool-scavenging Strategy 3
Other seller friends confirmed their subscription to Amazon's VAT integration service before October 1. Even if the registration process starts later than October 1, they will still be charged according to the registration fee standard of 50 euros per country, and then they can enjoy the new filing fee (cheaper) by filing next month. A single country can save 100 euros on registration fees!!!
Here's a detailed overview of three recent wools from Amazon's VAT Consolidation Service:
🎁 [Wool 1:2022 European New Seller Offer] - Countdown to the last 15 days!Save up to 598 euros!
For Chinese sellers newly entering the European site in 2022, they can enjoy the Amazon VAT integration service by starting September 30, 2022, Beijing time:
1. Free registration in the UK+any EU country VAT+EORI #（原价50欧 /country), free sworn translation in Poland and Spain;
2. 6 months free declaration (original price 33 Euro/month/country);
3. 6-month tax representative fee* free (original price 21 Euro/month/country, if the country applies to the tax representative)
1. Free registration in the UK+any EU country VAT+EORI #（原价50欧 /country), free sworn translation in Poland and Spain;
2. 6 months free declaration (original price 33 Euro/month/country);
3. 6-month tax representative fee* free (original price 21 Euro/month/country, if the country applies to the tax representative)
🎁 [Wool 2: China-Europe Plan Offer] - Direct cashback of 2,000 euros!
Recently, the China-Europe program is very popular in sellers' friend circles. After starting, Amazon will automatically distribute German products to FBA warehouses in Poland and the Czech Republic to improve the timeliness of products entering the warehouse.
At the same time, you can save an additional €0.26 on delivery fees for every Amazon Logistics item on the German sales site! Once started, VAT registration and reporting obligations will be triggered accordingly, so be sure to be VAT compliant before starting the China-Europe Plan — that is, register and upload VAT numbers from Poland and the Czech Republic.
From June 1 to November 30, 2022, you will receive an issue log of exclusive offers for the China-Europe Program and start FBA warehousing services in Germany, the Czech Republic, and Poland in [Seller Central - Amazon Logistics - Activate Product Inventory - Select “Store in Germany, Poland, and the Czech Republic”] to join the China-Europe Program.
📑 Once activated, you can get the following benefits:
1. Enjoy Amazon's VAT Integration Service limited-time promotion: Sellers who use Amazon's VAT Integration Service to register for a [Poland and Czech] VAT number and successfully upload and verify their tax number to Seller Central before November 30, 2022 can enjoy a cashback of 1,000 EUR per country, up to a maximum of 2,000 EUR!
2. Save €0.76 on each FBA item ordered by the seller: If you join the Central Europe Program between June 1 and November 30, 2022, you can enjoy an additional €0.5 discount per FBA item, in addition to the Central Europe Plan itself, which saves €0.26 per FBA item. In other words, your FBA shipments will save a total of €0.76 per FBA item, up to a maximum of €20,000.
Seller FAQ
❓ Q1: What is the form of cashback?
A: The current allowance will be transferred directly to your seller account balance in the form of a cash benefit.
❓ Q2: How can I get cashback after I complete the event requirements?Do I need to apply voluntarily?
A: After the campaign ends, Amazon will compile a list of all sellers that meet the requirements of the event and carry out unified cashback operations. Sellers do not need to make an additional application.
❓ Q3: How long does it usually take for cashback to be issued?
A: Amazon will take some time to review the list of cashback sellers, which is expected to be completed within 2-4 weeks after the campaign ends.
🎁 [Wool 3: Changes in Amazon's VAT integration service fee standards] -- A single country can save 100 euros in registration fees!
After October 1, the new Amazon VAT Consolidation Service fees will take effect. Here's a comparison between current and new fees:
📑 Registration fee (one-time fee):
📑 Filing fee (charged monthly):
*Before October 1, if you file VAT in 7 countries, you only need to pay the corresponding filing service fee for 5 countries; after October 1, 5, 6, and 7 reporting countries will be offered 5%, 20%, and 30% discounts respectively.
📑 Tax representative fee* (charged monthly):
After the new prices go live on October 1, all sellers can enjoy the following benefits:
1. Free registration for UK+EU EORI #，波兰及西班牙免费宣誓翻译；
2. Monthly filing fees: 29.17 EUR/month/country; 5%, 20%, and 30% discounts are offered for 5, 6, and 7 reporting countries/regions, up to a minimum of 20.4 EUR/month/country (the specific fee depends on the number of countries you subscribe to, see figure above);
2. Monthly filing fees: 29.17 EUR/month/country; 5%, 20%, and 30% discounts are offered for 5, 6, and 7 reporting countries/regions, up to a minimum of 20.4 EUR/month/country (the specific fee depends on the number of countries you subscribe to, see figure above);
The #EORI service is provided by your tax service provider. Your tax service provider will also determine which country in the European Union is appropriate for you to apply for an EU EORI number.
* In Europe, some countries/regions require non-EU taxpayers to appoint a tax representative to register for VAT. This means that if you're a non-EU seller, you'll need to appoint a tax representative in some EU countries/regions to register for VAT. If you use Amazon VAT Consolidation Services, your tax representative will be your third party tax service provider. Currently, Chinese sellers are only required to pay tax representative fees in France, Italy, Spain, and Poland.
* In Europe, some countries/regions require non-EU taxpayers to appoint a tax representative to register for VAT. This means that if you're a non-EU seller, you'll need to appoint a tax representative in some EU countries/regions to register for VAT. If you use Amazon VAT Consolidation Services, your tax representative will be your third party tax service provider. Currently, Chinese sellers are only required to pay tax representative fees in France, Italy, Spain, and Poland.
*The above text is for Chinese sellers. The dates/times in the article are all Beijing time
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